Quantitative and Qualitative Disclosures About Market Risk
−Removed: We are subject to certain risks that may affect our results of operations, cash flows and fair values of assets and liabilities, including volatility in foreign currency exchange rates, interest rate movements, pricing pressures worldwide and weak economic conditions in the foreign markets in which we operate.
+Added: We are subject to certain risks that may affect our results of operations, cash flows and fair values of assets and liabilities, including volatility in foreign currency exchange rates, interest rate movements and pricing pressures worldwide as well as changes in economic conditions in the markets in which we
+Added: operate as a result of the COVID-19 pandemic.
We manage the impact of foreign currency exchange rates and interest rates through various financial instruments, including derivative instruments such as foreign currency forward contracts, interest rate lock contracts and interest rate swap contracts.
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In particular, devaluation or significant deterioration of foreign currency exchange rates are difficult to mitigate and likely to negatively impact earnings.
−Removed: The cash flows from these contracts
−Removed: are reported as operating activities in our consolidated statements of cash flows.
+Added: The cash flows from these contracts are reported as operating activities in our consolidated statements of cash flows.
Balance Sheet Risk Management Hedging Program
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Our net investment hedging program is designed to mitigate currency fluctuations between the U.S.
−Removed: dollar and South Korean won as a result of exercising our option to increase our ownership percentage in Samsung Bioepis to approximately 49.9%.
+Added: dollar and the South Korean won as a result of our approximately 49.9% ownership interest in Samsung Bioepis.
We entered into foreign currency forward contracts to manage the foreign currency risk with our forward contracts used to hedge changes in the spot rate over the next 10 months.
3 unchanged sentences
Our investment portfolio includes cash equivalents and short-term investments.
−Removed: The fair value of our marketable securities is subject to change as a result of potential changes in market
−Removed: interest rates.
+Added: The fair value of our marketable securities is subject to change as a result of potential changes in market interest rates, including changes resulting from the impact of the COVID-19 pandemic.
The potential change in fair value for interest rate sensitive instruments has been assessed on a hypothetical 100 basis point adverse movement across all maturities.
1 unchanged sentence
The fair values of our investments were determined using third-party pricing services or other market observable data.
−Removed: To achieve a desired mix of fixed and floating interest rate debt, we entered into interest rate swap contracts during 2015 for certain of our fixed-rate debt.
−Removed: These derivative contracts effectively converted a fixed-rate interest coupon to a floating-rate LIBOR-based coupon over the life of the respective note.
−Removed: As of December 31, 2019 and 2018 , a 100 basis-point adverse movement (increase in LIBOR) would increase annual interest expense by approximately $6.8 million.
Pricing Pressure
2 unchanged sentences
In addition, certain countries set prices by reference to the prices in other countries where our products are marketed.
−Removed: Thus, our inability to obtain and maintain adequate prices in a particular country may adversely affect our ability to secure acceptable prices in existing and potential new markets, which may limit market growth.
−Removed: The continued implementation of pricing actions throughout Europe may also lead to higher levels of parallel trade.
+Added: Our inability to obtain and maintain adequate prices in a particular country may not only limit the revenues from our products within that country but may also adversely affect our ability to secure acceptable prices in existing and potential new markets, which may limit market growth.
+Added: The continued implementation of pricing actions
+Added: throughout Europe may also lead to higher levels of parallel trade.
In the U.S., federal and state legislatures, health agencies and third-party payors continue to focus on containing the cost of health care.
1 unchanged sentence
It is possible that additional federal health care reform measures will be adopted in the future, which could result in increased pricing pressure and reduced reimbursement for our products and otherwise have an adverse impact on our consolidated financial position or results of operations.
−Removed: There is also
−Removed: significant economic pressure on state budgets that may result in states increasingly seeking to achieve budget savings through mechanisms that limit coverage or payment for our drugs.
+Added: There is also significant economic pressure on state budgets that may result in states increasingly seeking to achieve budget savings through mechanisms that limit coverage or payment for our drugs.
Managed care organizations are also continuing to seek price discounts and, in some cases, impose restrictions on the coverage of certain drugs.
−Removed: Our products are also susceptible to increasing competition in many markets from generic versions, biosimilars and prodrugs of existing products as well as products approved under abbreviated regulatory pathways.
+Added: Our products continue to face increasing competition in many markets from new originator therapies, generics, prodrugs and biosimilars of existing products and products approved under abbreviated regulatory pathways.
Such products are likely to be sold at substantially lower prices than branded products.
Accordingly, the introduction of such products, as well as other lower-priced competing products, may significantly reduce both the price that we are able to charge for our products and the volume of products we sell, which will negatively impact our revenues.
−Removed: In addition, when a generic version of one of our products is commercialized, it may, in some cases, be automatically substituted for our product and reduce our revenues in a short period of time.
+Added: In addition, in some markets, when a generic or biosimilar version of one of our products is commercialized, it may be automatically substituted for our product and significantly reduce our revenues in a short period of time.
+Added: Multiple TECFIDERA generic entrants are now in the U.S.
+Added: market and have deeply discounted prices compared to TECFIDERA.
+Added: The generic competition for TECFIDERA significantly reduced our TECFIDERA revenues during the year ended December 31, 2020, and is expected to have a substantial negative impact on our TECFIDERA revenues for as long as there is generic competition.
We are subject to credit risk from our accounts receivable related to our product sales.
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and Europe with concentrations of credit risk limited due to the wide variety of customers and markets using our products as well as their dispersion across many different geographic areas.
−Removed: Our accounts receivable are primarily due from wholesale and other third-party distributors, public hospitals, pharmacies and other government entities.
+Added: Our accounts receivable are primarily due from wholesale and other
+Added: third-party distributors, public hospitals, pharmacies and other government entities.
We monitor the financial performance and creditworthiness of our customers so that we can properly assess and respond to changes in their credit profile.
−Removed: We operate in certain countries where weakness in economic conditions can result in extended collection periods.
+Added: We operate in certain countries where weakness in economic conditions, including as a result of the COVID-19 pandemic, can result in extended collection periods.
We continue to monitor these conditions, including the volatility associated with international economies and the relevant financial markets, and assess their possible impact on our business.
6 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.